ing To Edwin Reyes 4/ Test:Exam 2-ACC 2311 Time Remaining: 01:5921 This Question
ID: 2559051 • Letter: I
Question
ing To Edwin Reyes 4/ Test:Exam 2-ACC 2311 Time Remaining: 01:5921 This Question: 30 pts 5 of 27 (0 complete) This Test: 100 Zarson's Netballs is a manufacturer of high-quality basketballs and volleyballs. Setup costs are driven by the number of batches. Equipment a maintenance costs increase with the number of machine-hours, and lease rent is paid per square foot. Capacity of the facility is 17,000 square Zanon is using only 80% of this capacity. Zarson records te oost of unused capacity as a separate line itom and not as aproductcot The f the budgeted information for Zarson EEB (Click the icon to view the budgeted information.) (Click the icon to view other information.) Read the reguirements Requirement 1.Calculate the cost per unit of cost driver for each indirect oost pool Select thoformula you wi uso, then calculate the cost driver rate. (Round your answers to the nearest cent Abbreviations used "equip."#equpm Cost driver rato Setup Equip, and Maint Lease rent, et Roquirement 2. what is the budgeted ocal of unused capacity? d- Select tho formula you will use, then caloulate the oost of unused capacity Cost of unused oapacity Requiremant 3. What is the budgetod total cost and the cost per unit of per unit to the noarest cent. Wol una et rosorom used to produco (a) basketbal. and?) voleybals? (Enter te Equipment and maintenance next question Choose trom any list
Explanation / Answer
1. Computation of cost Driver rate Activity cost pool Activity Measure Budgeted overhead cost Activity Pool Activity rate of activity cost pool Setup Nos of Setups $92,000.00 400 $230.00 Equip & Main Machine Hours $123,750.00 27500 $4.50 Lease Rent Rent per Square Footage $204,000.00 13600 $15.00 2. Cost of Unused Capacity= ( Rent Paid for unused Space) Cost of Unused Capacity= ($255000*20%)= $51000 3. Computation of Budgeted Cost Particular Basketball Volleyball Total Direct Material 277650 282680 560330 Direct Labour 109100 100820 209920 Setup Cost (100*$230) (300*$230) 23000 69000 92000 Equipment Operation & Maintainance (13500*$4.50) (14000*$4.50) 60750 63000 123750 Rent (3200*$15) (10400*$15) 48000 156000 204000 Total Cost 518500 671500 1190000
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